SUZY in the CITY IN DUBLIN: Pension group's sales slump.

Byline: EDITED BY SUZY JAGGER 

TURBULENT stock markets were blamed yesterday for an 18 per cent drop in sales at the Hibernian life and pensions group.

Revenue from selling came in at euro331 million in the first half of the year, parent group Aviva reported.

But the figures received a welcome boost from the Government's controversial Special Investment Savings Accounts scheme.

That netted a one-off sales return of euro36.7 million for Hibernian, and helped lift new business premium income by 28 per cent, to euro106 million.

Hibernian chief executive Bryan Jenkins said: "To date 2002 has been a year of strong operating performance in our life & pensions and general insurance businesses.

"Unfortunately, turbulent stock markets worldwide have taken their toll, providing a difficult operating environment."

Mr Jenkins also conceded that the level of operating profit in the insurance operation has been "substantially eroded" by stock market falls.

He reported that the group was committed to implementing the recommendations of the Motor Insurance Advisory Board, which are intended to reduce the cost of claims and their settlement, and are being strongly promoted by the Government.

Aviva, formerly known as CGNU, reported marginally higher profits overall of euro1.55 billion on 11 per cent higher sales of euro1.9 billion.